JPMorgan Chase Can Check Their Butts
A young entrepreneur duped the bank out of $175 million. Now her defense lawyers are billing the bank for cellulite butter.
The nation’s largest bank deserves more humiliation for the ridiculous deal it cut with a 28-year-old entrepreneur to acquire a bogus student-loan website that she’d named Frank.
So here it comes:
In 2021, JPMorgan Chase bought Frank for a staggering $175 million.
The bank loved its young founder Charlie Javice so much that it also made her managing director. It even planned to pay her as much as $20 million more. Then it found out she was a fraud.
Frankly, when JPMorgan Chase bought Frank, it didn’t do its homework.
Frankly, this is a bank with $4.3 trillion in assets. Frankly, it’s an investment banking giant that does multibillion-dollar deals on Wall Street all day long. Frankly, what it bought was a bogus email list.
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Javice was sentenced to more than seven years in prison in September, but she remains free on bail pending her appeal. She’s still living – where else – but South Florida, where she was teaching Pilates wearing an ankle bracelet.
Frankly, JPMorgan is paying her legal fees. Frankly, it may even be on the hook to pay for her pricey appeal.
Yes, frankly, JPMorgan Chase agreed to pay Javice’s monstrous legal bills when it acquired Frank. And, frankly, the court is holding the giant bank to the contract.
Lawyers for Javice and her convicted co-executive Oliver Amar have billed JPMorgan Chase for $142 million. By contrast, the legal defense of Theranos founder Elizabeth Holmes and her fake blood-testing technology cost $30 million.
So, frankly, how did this happen?
Javice had 19 lawyers appearing in court for her. Amar had 16. The legal bills also included charges for luxury hotels, fine meals and of course, cellulite butter.
